ASX-listed service provider, Hyro (ASX:HYO), has signalled a turnaround in its fortunes and posted a 134 per cent rise in year-on-year net profits.
The company reported a net profit of $15.35m for the year ending December 31, 2009, up from a net loss of $45.1m in the previous year. However, operating revenue in the same period dropped 31 per cent to $17.7m.
Hyro’s results come after a rollercoaster year for the service provider. In September 2009, it blamed a $10m drop in operating revenue on a bad economy and “negative legacy issues”.
But the company has bounced back thanks to a $20m debt discharge agreement with Lehman Brothers liquidators and a series of major wins with the Victorian State Government.
In March 2009, Hyro sold parts of its Synergy Plus subsidiary to ASX-listed integrator, ComputerCorp (ASX:CZP) in a deal worth $9.3m.
“By the end of 2009, Hyro had made considerable progress: Its commercial debt has been reduced from $27.7m to $1.35m,” it said in a statement. “The legacy issues are now behind Hyro. This achievement has come at a significant cost both in financial terms and at the level of executive management time and focus spent on addressing them during the past two years.
“Shareholders can now look forward to a company performance that more closely reflects Hyro’s opportunities created by the market’s growing appetite for digital customer engagement.”